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    Home»Business & Economy»US Maintains Steep Car Tariffs Until EU Acts on Trade Concessions
    Business & Economy

    US Maintains Steep Car Tariffs Until EU Acts on Trade Concessions

    Lester HoltBy Lester HoltAugust 21, 2025No Comments2 Mins Read
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    Tariff reduction tied to EU action

    The United States will keep its 27.5% duty on European cars in place until the European Union introduces legislation to ease tariffs on American goods. Under the new framework deal, published Thursday, Washington has agreed to lower the levy to 15% once Brussels begins the legislative process.

    Deal reached at Trump–von der Leyen meeting

    The agreement was announced on 27 July at Donald Trump’s golf resort in Turnberry, Scotland, after an extended meeting with European Commission president Ursula von der Leyen. Alongside the car tariff dispute, the framework includes EU commitments to abolish tariffs on all US industrial exports and expand market access for American seafood and agricultural products.

    Implementation depends on EU legislation

    US officials said the reduction could come quickly, provided the EU acts. “Once they introduce the legislation, even before it is passed, the tariff relief can begin,” a senior American official said. The joint declaration makes clear that European carmakers will face the full 27.5% rate until that step is taken, with cuts applied “from the first day of the same month in which the EU legislative proposal is tabled.”

    European unease over the deal

    Some European leaders voiced misgivings. French prime minister François Bayrou described the outcome as a setback for Europe, while Spanish prime minister Pedro Sánchez gave only lukewarm backing, noting its limited

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    Lester Holt
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    Lester Holt is a freelance journalist based in the USA, with over 25 years of experience reporting on Politics, World Affairs, Business, Health, Technology, Finance, Lifestyle, and Culture. He earned his degree in Journalism from California State University, Sacramento. Throughout his career, he has contributed to outlets such as NBC News, MSNBC, and The New York Times. Known for his clear reporting and insightful storytelling, Lester delivers accurate and timely news that keeps readers informed on national and global developments.

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